Globalization

In my eyes, globalization is the process of the world joining together for a common purpose. You can look it as a recreation of "Pangaea." It can be for economic, safety, or environmental reasons. The effects of globalization can be seen in almost everything you look at. You're always seeing things that are "Made in China," or "Made in Japan."

Two of the major drivers of globalization are declining trade and investment barriers, and technological factors. After WWII, Western countries started removing trade barriers. Under GATT and the WTO, trade barriers have continued to fall, and

now do business with already developed nations, and be able to enter those new markets that weren’t open to them in the past. This also forces the developing countries to cut costs by becoming more efficient. The consumers really benefit from this because they can get the products at a lower cost. This in return helps the economy because the consumers have more money to spend on goods.

The United States has to deal with increasing pressures from countries in developing nations in the manufacturing sector. We have to be able to adapt into a country that is mainly service based. Another big issue for the United States is going from being the world’s biggest lender to the world’s biggest debtor. We are becoming increasing dependent on other countries as a source of money. This has been caused by us importing more than we export.

Another issue the United States is dealing with in regards to globalization is resistance from citizens. They are afraid that their jobs will be outsourced. This is happening in huge numbers, but most can find other jobs, some even better than the previous.

The developing nations are dealing with problems of their own. They have to devise infrastructures that promote innovation and entrepreneurship. Risk taking should be encouraged and failure should be backed by the governments.